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Prof. Ravi Anupindi, Univ. of Michigan used by Prof. Hausman with permission
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7X7 TO 787
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FASTENER TYPES
Hi-Locks
Washers
Pins
Rivets
Nuts
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Collars
Spacers
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5,608
5,000
4,322
4,000
3,000
2,000
1,227
1,000
961
388
206
145
101
62
53
49
43
193
102
34
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FASTENER INDUSTRY
SUPPLY CHAIN
Raw Material
Suppliers
Brokerage
house
Fastener
OEMs
BCA and
Partner A
provide the only
consumption
based signal to
suppliers
BCA
Tier 1
partners
Qualified
suppliers
Brokerage houses
may be doubleordering through
different channels
Partner C
considering
going
through
distributors
for all
Partner A
Partner D
Partner B
outsourced
fastener
procurement
and stocking
Distributors
speculating
BCA: Boeing
Commercial
Aircraft
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Tier 2/3
supplier
Sales of
fasteners
between
BCA and
partners
IDS
Distributors
Partner B
Partner C
Partner D
DISCUSSION
What
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BOEING
ENTITY
TIER-1
PARTNERS
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FASTENER
SUPPLIERS
Boeing - The Fight for Fasteners
12
BOEING
1. Partner
Min/Max
Signals
TIER-1
PARTNERS
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ENTITY
FASTENER
SUPPLIERS
13
BOEING
1. Partner
Min/Max
Signals
TIER-1
PARTNERS
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ENTITY
FASTENER
SUPPLIERS
Boeing - The Fight for Fasteners
14
BOEING
1. Partner
Min/Max
Signals
4b. ISSUE /
SHIP
(Low Volume)
TIER-1
PARTNERS
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3. DIRECT SHIP
(High Volume)
ENTITY
4a. DIRECT
SHIP
(Low Volume)
5. DROP SHIP
(High Volume)
FASTENER
SUPPLIERS
15
Con
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Con
17
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Con
18
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Con
19
IMPLEMENTING FPM
What
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SUMMARY
Observe
items
Understand and critique the design and
implementation of a new procurement model
Different ways an OEM and its partners can
source components
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